According to the fourth annual Sustainability Survey conducted by CoreNet Global and Jones Lang, LaSalle, half of corporate real estate executives will “pay extra for space in green buildings”[1]. The survey also indicated that “sustainability” plays a major role in how businesses select office space, with 64 percent of respondents saying that this factor is a “critical business issue” and 92 percent citing it as criteria in location decisions. Fully 50 percent were willing to pay more for green leased space in 2010 – a 13 percent jump from 2009.

Interestingly, the perspective on green office space has changed as well. Dan Probst, Jones Lang LaSalle’s chairman of energy and sustainability services, says that just a few years ago, sustainability would have been viewed in many cases as a “costly way to make the company look good.” Even as recently as two years ago, it might have been viewed as a way to save money in the short run, but now “pursuing green strategies [can] enhance employee productivity,” he said.

Interestingly, green strategies are being viewed as a way to actually stabilize budgets and the economy this year. 23 percent of respondents (on top of the original 50 percent) said that more rent would be acceptable if it were offset by lower energy costs. Furthermore, the strategies are increasingly being viewed as a way to pay for ownership of space rather than leasing, and green spaces may ultimately tend toward longer, more stable ownership trends than other types of retail and commercial space simply because they enable a company to “pay itself” for a real estate investment while also demonstrating a commitment to sustainability.

Are you investing in green real estate? Please leave a comment below if you would be interested in learning more about legitimate, simple ways to go green that can immediately impact your bottom line.

Thank you for reading REJournalOnline’s Commercial Real Estate Letter!

---

[1] http://www.prnewswire.com/news-releases/corporate-sustainability-programs-focus-on-employee-productivity-and-health-as-more-companies-say-they-will-pay-extra-for-green-leased-space-115618834.html